Michael Dudley

<p>Experts differ on the extent to which the economy will be damaged as a result of the mortgage crisis. But almost all agree it's going to get a lot worse.</p>

<p>China's burgeoning middle class is moving out of the crowded and polluted cities to a booming constellation of satellite cities. The suburbanization of China has begun.</p>

<p>The prevalence of mortgage "walkaways" reveals that the mortgage crisis has significantly changed the values associated with homeownership, and reduced the stigma of foreclosure.</p>

<p>Unprecedented failure in municipal bond auctions is causing municipal borrowers to flee the auction market and driving up rates at which cities can borrow money.</p>

<p>The recent phenomenon of housing abandonment in the suburbs is only the beginning: projections now estimate that by 2025 40% of large-lot homes will be standing vacant.</p>